Vietnam central bank to inspect foreign currency trading activities of some banks

The State Bank of Vietnam said on its website on Nov 2 that it would perform inspection on foreign currency trading activities at some credit institutions as the agency was reported some violations of the new decree.

Vietnam’s government issued Decree No.95/2011/ND-CP dated Oct 20, setting higher fines and adding new punishment for those banks which violated foreign exchange and gold regulations, specifying that people caught illegally trading foreign exchange, gold or exporting gold could be fined as much as VND300-500 million, instead of VND70 million now. Basically, local credit institutions and branches of foreign banks strictly followed the new regulations, helping to gradually stabilize to the local forex market.

However, the central bank was reported that there were some credit institutions and branches of foreign banks which traded foreign currency above the regulated ceiling rates, adversely affecting the effectiveness of the new decree, the stability of the local market and the operations of credit institutions.

Banking Supervisory Agency would immediately organize inspection activities on foreign currency trading of some local credit institutions and branches of foreign banks to verify their compliance to the central bank’s regulations.

Source Sophie/ News Writer/ StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Nov 2 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry